The following is a summary of the Natuzzi S.p.A. (NTZ) Q4 2023 Earnings Call Transcript:
Financial Performance:
Natuzzi reported a decline in sales for Q4 and the full year of 2023 when compared to 2022, but maintained sales from branded goods in excess of 92%.
Gross margin after accounting for restructuring costs was 36.2% in Q4 2023.
The company cut its workforce by 514 units in 2023, equivalent to 17.5% of the total workforce.
Natuzzi invested €12 million in 2023, with €4.6 million allocated to retail to open nine new stores, and €7.2 million for factory enhancements.
Despite one-off restructuring costs, the gross margin trend for 2023 was positive at 36.3%, due to better inventory management and renegotiation with suppliers.
Business Progress:
Natuzzi is transitioning towards becoming a brand retail company with almost 60% of total sales coming from retail.
The company launched nine new stores in 2023, particularly focusing on North America.
Alongside the workforce reduction, significant investment in staff training reflects a restructured company.
The company also focused on digital enhancement, investing €0.4 million in digitalizing processes.
There are plans to add 15 to 20 new direct operated stores in North America over the next two years, reinvesting funds from potential disinvestments to support the transformation.
More details: Natuzzi SPA IR
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